Croatia's debt

Milanovic: Croatia can no longer endure new debt

21.07.2011 u 18:57

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Asked by the press to comment on the government's decision to issue new bonds increasing Croatia's debt by about HRK 5.8 billion, Social Democratic Party (SDP) president Zoran Milanovic said on Thursday this practice should stop, as Croatia could no longer endure it.

"That's borrowing again to cover current expenses. This practice has to stop in Croatia. It has been going on for years. That could be tolerated sometimes, but now it's over, Croatia can't go on like this," said Milanovic.

Asked if this meant that the SDP, if it won the upcoming parliamentary election, was promising a different policy, he said he could promise a policy of sensible public spending, a policy of preserving fundamental social rights, and a development policy based on new jobs.

"Everybody says that, of course, it sounds very nice, but one has to know how to make it happen and that's the whole point. Only new jobs in productive sectors can enable Croatia to develop and go on."

Reporters asked about the possibility of Croatia signing the European Union accession treaty on the eve of the parliamentary election, in the wake of speculation that Prime Minister Jadranka Kosor, on a visit to Poland yesterday, was promised that the treaty would be signed in late November or early December, and if he saw this as abuse of the "European issue" for election purposes.

Milanovic said one could expect the treaty to be signed at the European Council on December 9, but stressed the SDP did not care when it happened, as the accession negotiations were completed.